Bank of International Settlements building in Basel. Photo: BIS
BIS Chief Fears Fresh Lehman From Worldwide Debt Surge -- The Telegraph
Jaime Caruana says investors are ignoring prospect of higher interest rates in the hunt for returns
The world economy is just as vulnerable to a financial crisis as it was in 2007, with the added danger that debt ratios are now far higher and emerging markets have been drawn into the fire as well, the Bank for International Settlements has warned.
Jaime Caruana, head of the Swiss-based financial watchdog, said investors were ignoring the risk of monetary tightening in their voracious hunt for yield.
“Markets seem to be considering only a very narrow spectrum of potential outcomes. They have become convinced that monetary conditions will remain easy for a very long time, and may be taking more assurance than central banks wish to give,” he told The Telegraph.
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My Comment: The markets are disagreeing to the above gloomy assessment .... as to what is my take .... I always take the opposite point of view because when it comes to money .... the consensus point of view is usually wrong.
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